David Dreman Goes Solo on His Bullish Call

David Dreman Goes Solo on His Bullish Call
Contrarian investors
David Dreman

A lot of times I write about investors who are well known to avid value investors, but virtually unknown to the average American. Since, this site is intended for all readers I have decided to put a bio of a particular investor, when I write an article about them.

David Dreman’s bio from Dreman.com

This Tiger grand-cub was flat during Q2 but is ready for the return of volatility

Tiger Legatus Master Fund was up 0.1% net for the second quarter, compared to the MSCI World Index's 7.9% return and the S&P 500's 8.5% gain. For the first half of the year, Tiger Legatus is up 9%, while the MSCI World Index has gained 13.3%, and the S&P has returned 15.3%. Q2 2021 hedge Read More

David Dreman is the founder, Chairman and Chief Investment Officer of Dreman Value Management, L.L.C., established in 1997. Mr. Dreman founded his first investment firm, Dreman Value Management, Inc., in 1977 and served as its President and Chairman until 1995, followed by a similar role at Dreman Value Advisors, Inc. from 1995 to 1997.

Mr. Dreman’s best selling book, Contrarian Investment Strategies – The Next Generation, was published in 1998 by Simon & Schuster. His previous widely acclaimed books include Psychology and the Stock Market (1977), The New Contrarian Investment Strategy: the Psychology of Stock Market Success (1980), and The Contrarian Investment Strategy (1982). Articles discussing the success of Mr. Dreman’s investment methodologies have appeared in national publications such as Forbes, Barron’s, Institutional Investor, The Wall Street Journal, The New York Times, Newsweek, Money andFortune.

A regular columnist for Forbes for over 29 years, he has presented before the National Bureau of Economic Research, the Society of Quantitative Analysts, the Harvard Medical School, the Cambridge Center for Behavioral Studies, the Institute of Behavioral Finance, the Association for Investment Management and Research (AIMR), the National Financial Analysts Seminar, as well as numerous other academic and professional groups. Mr. Dreman’s research findings have also been published in The Financial Analysts Journal, The Journal of Investing, and The Journal of Behavioral Finance.

Mr. Dreman is also co-editor of The Journal of Behavioral Finance, President of the Dreman Foundation, and a Director of the IFREE Foundation, whose founder Vernon Smith was awarded the Nobel Prize in Economics in 2002. Mr. Dreman was awarded a Doctor of Laws Degree from the University of Manitoba in 1999 and is a member of the Board of Trustees of the University of Manitoba.

More from GuruFocus: David Dreman is the founder and Chairman of Dreman Value Management, LLC and also serves as the firms Chief Investment Officer. His Large Cap Value Fund has returned average 17% annually, and Small Cap Value Fund average 16.5% annually since inception in 1991. A regular columnist for Forbes for 25 years, Mr. Dremans recent best-selling book, “Contrarian Investment Strategies – The Next Generation” was published in the spring of 1998.

David Dreman was interviewed yesterday on CNBC. Dreman remains bullish on stocks.  Dreman thinks that the market will be higher in a few years, but that there will be a lot of volatility along the way.

Dreman seems to be taking an opposing view to many other prestigious minds in the financial world. Seth Klarman, Robert Shiller, John Hussman among others, believe returns for stocks will be low in the coming decade. Klarman stated recently that he has never been as worried about the economy as he is today.

In addition, the WSJ reported today that the Federal Reserve is starting to worry about a double dip recession.

Dreman in particular is bullish on the financial, and oil services sector.

In the financial sector Dreman likes Wells Fargo & Company (WFC), The PNC Financial Services Group Inc. (PNC), JPMorgan Chase & Co. (JPM).

In the oil services sector, Dreman favors Halliburton Company (HAL)( which is involved in the whole BP fiasco), Apache Corp. (APA), Chesapeake Energy Corp. (CHK)

Below is the video. The interview runs for about six minutes.

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